RAMANA DAYARAM SHETTY vs THE INTERNATIONAL AIRPORT AUTHORITY OF INDIA AND ORS.

The Supreme Court held that the International Airport Authority, as an instrumentality of the State under Article 12 of the Constitution, has the discretion to accept or reject tenders as per the conditions laid out in the tender notice. The Court found that the acceptance of the fourth respondent's tender, despite not meeting the specified criteria of being a registered second class hotelier with five years' experience, was valid as the authority was satisfied with the evidence provided. The appeal against the High Court's dismissal of the writ petition was thus rejected, affirming the authority's decision.